Everything you need to know about the requirement to use certified POS software from 2018
The 2016 French Finance Act introduced a requirement to use certified POS systems for businesses that are subject to VAT and record their payments electronically. This requirement takes effect in January 2018. The goal of the reform is to fight tax fraud.
Many hair salons, beauty salons and spas are directly affected by the reform and will need to equip themselves with certified POS software before 2018.
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Certified accounting software from 2018
From January 1, 2018, all businesses subject to VAT that record their payments electronically will be required to use certified POS software.
With this certification requirement, the French government aims to prevent the type of fraud that consists of editing or deleting receipts to remove cash payments from the books.
Everyone subject to VAT is affected, whether a legal entity or a sole proprietor, even if they are exempt from VAT on part of their transactions and even if they fall under the VAT-exempt small business scheme (franchise en base).
Providing an individual certificate
The POS software and systems concerned must meet requirements for data inalterability, security, retention and archiving, as attested by a certificate issued by an accredited body or by an individual certificate issued by the software publisher.
The POS system must give the tax authorities access to the original recorded data as well as a dated breakdown of transactions and corrections (year, month, day, hour, minute).
The certificate must follow the template provided by the tax authorities: BOI-LETTRE-000242.
A hefty €7,500 fine
The French tax authorities may start unannounced inspections on January 1, 2018 to check that the software in use is compliant. Business owners will have to provide their software’s certificate of compliance.
Without a certificate, the business will face a €7,500 fine per non-certified piece of software and will have 60 days to bring its situation into compliance.
How do you become compliant?
To become compliant, make sure the publisher of the software you use can provide a certificate of compliance. If not, you will have to switch.
If you haven’t found your certified POS software yet, try ours here
Read Article 88 of French Law No. 2015-1785 of December 29, 2015, the Finance Act for 2016 (in French)